In a report published Monday, Deutsche Bank analyst Robyn Karnauskas downgraded Onyx Pharmaceuticals (NASDAQ: ONXX) from Buy to Hold, but raised the price target from $110.00 to $140.00.

In the report, Deutsche Bank noted, “Onyx confirmed on 7/16 that it is actively accepting bids from potential acquirers. Acquisition seems likely at this point and we are taking our TP up to reflect this view and potential full value to an acquirer at this time. We are assuming an M&A premium of 12% and have taken the assessed probability of success in EU up to 100%. Our new TP is $140/sh, which implies 11% upside from current levels. Downgrade to Hold. The Aspire study (Onyx's trial for Kyprolis use in 2L) caps duration of treatment at 18 cycles. As a result, we model $3.5B in peak WW sales (65% from US). This assumes duration of 10 mos for 1L, 16 mos for 2L, and 6 mos for 3L. We estimate peak share of 20% in 1L, 30% in 2L, and 50% in 3L. We still assume 50% success for Pfizer/Onyx breast cancer drug palbociclib, but at 100% it would add $8/sh to our Onyx FV.”